Joe Henry's machine shop uses 2,520 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,520 Holding cost per bracket per year Order cost per order $1.55 $19.00 2 days Lead time Working days per year 250 a) What is the EOQ? units (round your response to two decimal places). b)What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? $ units (round your response to two decimal places). (round your response to two decimal places). c)Given the EOQ, how many orders will be made annually? orders (round your response to two decimal places). What would be the annual order cost? $ (round your response to two decimal places). d)Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ (round your response to two decimal places).

Joe Henry's machine shop uses 2,520 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,520 Holding cost per bracket per year Order cost per order $1.55 $19.00 2 days Lead time Working days per year 250 a) What is the EOQ? units (round your response to two decimal places). b)What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? $ units (round your response to two decimal places). (round your response to two decimal places). c)Given the EOQ, how many orders will be made annually? orders (round your response to two decimal places). What would be the annual order cost? $ (round your response to two decimal places). d)Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ (round your response to two decimal places).

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

See similar textbooks

Similar questions

The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Joe Henry's machine shop uses 2,460 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,460 Holding cost per bracket per year $1.55 Order cost per order $19.50 Lead time 2 days Working days per year 250 Part 2 a) What is the EOQ? enter your response here units (round your response to two decimal places). Part 3 b) What is the average inventory if the EOQ is used? enter your response here units (round your response to two decimal places). What would be the annual inventory holding cost? $enter your response here (round your response to two decimal places). Part 4 c) Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places). What would be the annual order cost? $enter your response here (round…
Demand for a popular athletic shoe is nearly constant at 1000 pairs per year for a regional division of a national retailer (open every day, working days=365). The cost per pair is $54. It costs $72 to place an order, and annual holding costs are charged at 22% of the cost per unit. The lead time is two weeks (14 days). Show steps to find: a.What is the EOQ? b.What is the reorder point? c.How many orders per year?d.What is the total annual cost?
Please complete the problem usinf EXCEL, Show ALL formulas Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer. The cost per pair is $54. It costs $72 to place an order, and annual holding costs are charged at 22% of the cost per unit. The lead time is two weeks. a. What is the EOQ? b. What is the reorder point? c. What is the cycle time? d. What is the total annual cost?
Annual demand 2,400 units Unit price (`) 2.40 Ordering cost (`) 4.00 Storage cost 2% p.a. Interest rate 10% p.a. Lead time ½ month Calculate EOQ, reorder level and total annual inventory cost. How much does the total inventory cost vary if the unit price is changed to $ 5? Typed and correct answer please. I ll rate accordingly.
Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,500 Holding cost per bracket per year $1.50 Order cost per order $18.75 Lead time 2 days Working days per year 250 a) What is the EOQ?units (round your response to two decimal places).
Inventory Management Williams & Sons last year reported sales of $39 million, cost of goods sold (COGS) of $30 million, and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $1.23 million should be entered as 1,230,000,000. Round your answer to the nearest dollar.
Petromax Enterprises uses a continuous review inventorycontrol system for one of its SKUs. The following informationis available on the item. The firm operates 50 weeks in a year.Demand = 50,000 units>yearOrdering cost = $35>orderHolding cost = $2>unit>yearAverage lead time = 3 weeksStandard deviation of weekly demand = 125 unitsa. What is the economic order quantity for this item?b. If Petromax wants to provide a 90 percent cycle-servicelevel, what should be the safety stock and the reorder point?
Joe Henry's machine shop uses 2,450 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,450 Holding cost per bracket per year $1.65 Order cost per order $18.50 Lead time 2 days Working days per year 250 a) What is the EOQ? __units (round your response to two decimal places). b) What is the average inventory if the EOQ is used?__ units (round your response to two decimal places). What would be the annual inventory holding cost? $__ (round your response to two decimal places). c) Given the EOQ, how many orders will be made annually?__orders (round your response to two decimal places). What would be the annual order cost? $__ (round your response to two decimal places). d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? __ $ (round your response to two decimal places). d)…
PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS Talavartería El Cairo, S.A., is trying to improve its inventory control system and has installed an on-line computer in its retail stores. Cairo anticipates an annual consumption of 68,000 units per year, a cost per order of $40, and holding costs of $1.80 per unit. What is the CEP and total inventory holding cost at that level?
A local supermarket sells a popular brand of shampoo at a fairly steady rate of 380 bottles per month. The cost of each bottle to the supermarket is 45 cents, and the cost ofplacing an order has been estimated at $8.50. Assume that holding costs are based ona 25 percent annual interest rate. Stock-outs of the shampoo are not allowed.b. If the procurement lead time is two months, find the reorder point based on the onhand inventory
Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Emery uses 200 pounds per month of the chemical, estimates the holding cost to be £3.33 (because of spoilage), and estimates order costs to be £10 per order. What quantity should be ordered, and which supplier should be used? Discuss factor(s) should be considered besides total cost.